IDFC FIRST Bank removes forex markup charges on all credit cards

IDFC FIRST Bank has removed forex markup charges on all its existing and new credit cards, with no conditions attached. The benefit is available automatically to all cardholders, meaning customers do not need to apply for a new card, upgrade their existing card, or meet any spending threshold.

With this change, existing IDFC FIRST Bank credit card customers can make international transactions with Zero Forex Markup, while continuing to earn Reward Points or Cashback, as applicable, based on the features of their respective cards.

Shirish Bhandari, Head - Retail Liabilities, Credit Cards and Payments, IDFC FIRST Bank, said: “By eliminating forex markup charges across all our credit cards while continuing to offer Reward Points or Cashback as applicable, we are delivering a simple yet powerful benefit that makes international spending more rewarding for our customers.”

What does zero forex markup mean?

Forex markup is an additional fee charged by card issuers when a transaction is made in a foreign currency. The charge can increase the overall cost of overseas spending, including purchases made while travelling or payments for international subscriptions, software, education, and other services.

For example, a ₹1 lakh international transaction on a card carrying a 3.5% forex markup would attract a ₹3,500 markup. GST on the markup would add another ₹630, taking the additional cost to ₹4,130.

With zero forex markup, this additional charge would not apply, subject to the transaction being covered by the bank's zero-markup policy.

Key benefits to customers

1. With Zero Forex Markup, IDFC FIRST Bank customers can avoid the additional forex markup charges on eligible international transactions, reducing the overall cost of overseas spending.

2. Customers will continue to earn Reward Points or Cashback, as applicable, on international transactions as per the features of their respective cards.

3. Customers often purchase forex cards solely to avoid forex markup charges. With this feature, their existing IDFC FIRST Bank Credit Card effectively serves the same purpose.

4. International transactions today include not only travel, but also e-commerce purchases, subscriptions, streaming services, software, education payments, and business expenses. This makes the benefit valuable for travellers, students, professionals, and businesses alike.